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Meile Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Laura Meile hopes the

image text in transcribed Meile Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Laura Meile hopes the contract will be extended and the volume increased next year. Meile has developed costs for three alternatives. They are: general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive but efficient dedicated machine (DM). The cost data follow: Based on the cost, the process that is best suited for the current contracted volume is

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